Let's say we are interested in following the economy of a small island nation that makes sugar and knives. There are 36 labor units available in the economy to make sugar or knives. If 1 ton of sugar utilizes 3 labor units and one knife utilizes 6 labor units: a) Why does scarcity exist in an economy? Use the data given above as evidence of your reasoning b) What is the maximum amount of knives that can be produced? c) What's the maximum amount of sugar that can be produced? d) Draw this island nation's production possibility frontier e) What is the opportunity cost of knives